Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA/CAS Preliminary Exams > Exam 2/FM - Financial Mathematics
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

Actuarial Jobs by State

New York  New Jersey  Connecticut  Massachusetts 
California  Florida  Texas  Illinois  Colorado


Reply
 
Thread Tools Display Modes
  #1  
Old 11-11-2017, 12:28 PM
Leofwyen Leofwyen is offline
Non-Actuary
 
Join Date: Oct 2017
Posts: 2
Default Which bond formula to use?

Hi, im working through asm right now and im struggling a bit with bond pricing questions. When questions use the basic formula i usually get them right, but i almost never notice when i need to use the premium discount formula. I was hoping someone might have a for identifying which formula to use for a problem, or just generally when the premium discount formula would come in handy.
Reply With Quote
  #2  
Old 11-12-2017, 02:05 PM
xplicitator xplicitator is offline
Member
SOA
 
Join Date: Sep 2014
College: SFU
Posts: 33
Default

Generally when you're dealing with premiums or discounts of bonds, you would want to use the premium/discount formula (obviously). Another time to use the premium/discount formula is when you are dealing with callable bonds. At times, using the premium/discount formula can be more useful.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 02:16 PM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.10983 seconds with 9 queries